Rashid Fehmi Ibrahim, a 40-year-old man from San Juan, Puerto Rico, has been sentenced to 57 months in prison for his involvement in a massive tobacco trafficking and tax evasion scheme in the Twin Cities.
According to court documents, Ibrahim purchased approximately $4,300,000 worth of untaxed Other Tobacco Products (OTP) from out-of-state wholesalers between 2007 and 2011. He then shipped the products to Minnesota, where he stored them in rented storage units and resold them to retail establishments and other traffickers.
Ibrahim used various aliases and addresses to conceal his purchases and employed private interstate contract carriers to ship the products. He knowingly evaded the payment of state taxes, resulting in a loss of $3,048,109.39 to the state of Minnesota.
The case was a result of a joint investigation by the Minnesota Department of Revenue-Criminal Investigation Division and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Benjamin Langner prosecuted the case, which led to Ibrahim’s guilty plea on June 8, 2015, and his subsequent sentencing.
Ibrahim was also ordered to pay $3,048,109.39 in restitution to the state of Minnesota. He will serve three years of supervised release following his prison sentence.
The sentencing of Ibrahim serves as a warning to individuals involved in tobacco trafficking and tax evasion schemes. The prosecution of such crimes is a top priority for law enforcement agencies, and those who engage in these activities will face severe consequences.
Contact Information:
United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Key Facts
- State: Minnesota
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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